Negotiations between the Peruvian government and Movistar Peru (previously known as Telefonica del Peru, TDP) regarding the renewal of the Spanish-backed telco’s licences are expected to draw to a close in early 2013, the Andina news agency reports. Transport and Communications Minister Carlos Paredes was quoted as saying that the government has made its official proposals on the matter and expects a response from Movistar in the first half of January. TeleGeography’s GlobalComms Database notes that Movistar’s wireless licences for Lima and Callao expired between May 2011 and February 2012, but renewal of the licences was complicated by an unresolved dispute between the government and Movistar regarding USD850 million in back taxes dating back to 2000/2001that the government claims it is owed. Negotiations between the two parties in August 2012 reportedly saw the government alter the terms and conditions of a possible new licence to include obligations to boost coverage in rural areas. Should Movistar reject the proposals, the government’s contingency plan may see the licences offered up in an international tender.